Gold prices fell on Wednesday due to a slight uptick in the U.S. dollar, as investors refrained from making major bets ahead of U.S. President Donald Trump's expected announcement regarding appointments to the Federal Reserve Board.
اضافة اعلان
Spot gold dropped by 0.2% to $3,374.72 per ounce as of 04:42 GMT, after hitting a nearly two-week high on Tuesday. U.S. gold futures also edged down by 0.1% to $3,429.80.
The dollar rebounded from its lowest level in a week, reached in the previous session, reducing gold’s appeal for holders of other currencies.
Analyst Commentary
Ilya Spivak, Head of Global Macroeconomics at TastyLive, stated:
"Gold is caught between conflicting pressures. Falling yields have been supportive, but the U.S. dollar has held up well despite Friday’s heavy sell-off. That’s resulted in the current range we’re seeing, as prices await more conviction from various drivers."
Trump's Upcoming Fed Decisions
On Tuesday, President Trump said he would soon announce a short-term replacement for Federal Reserve Governor Adriana Kugler, who resigned on Friday. He also indicated that he has made a decision regarding the next Chair of the Federal Reserve.
Rate Cut Expectations Rise
The CME's FedWatch Tool now puts the probability of a rate cut in September at around 87%, following Friday’s weaker-than-expected employment growth data. That report was followed by Trump’s dismissal of the Commissioner of the U.S. Bureau of Labor Statistics (BLS).
Trade Tensions with India
On the trade front, Trump once again threatened to raise tariffs on imports from India due to its continued purchases of Russian oil. India responded by calling his criticism “unwarranted”, pledging to protect its economic interests, thereby deepening trade tensions between the two countries.
Perth Mint Sales Drop Sharply
Meanwhile, Perth Mint reported that its gold product sales dropped 33% in July compared to the previous month. Silver sales also fell to their lowest level in six months, according to a statement released Wednesday.
Other Precious Metals
Spot silver remained unchanged at $37.82 per ounce.
Platinum fell by 0.5% to $1,314.76.
Palladium declined by 0.6% to $1,168.42.
